Results by business segment

Exploration & Production

The Exploration & Production segment reported a 21.1% decrease in adjusted operating profit to €11,551 million. This result reflected reduced oil and gas realizations in dollar terms (down 8.9% on average) higher depreciation charges taken in connection with the start-up of new fields mainly in the second half of 2013, achieving full ramp-up in the course of 2014. Adjusted net profit of €4,424 million decreased by 25.7% due to a reduced operating performance. The adjusted tax rate increased by approximately 2 percentage points in the year due to a larger share of taxable profit reported in Countries with higher taxations.

Gas & Power

The Gas & Power segment reported an adjusted operating profit of €310 million reversing an adjusted operating loss of €638 million in 2013. The 2014 results were driven by better competitiveness due to the renegotiation of a substantial portion of the long-term gas supply portfolio, including one-off effects related to the purchase costs of volumes supplied in previous reporting periods, which was larger than in the full year 2013. The result also reflected a positive contribution of international LNG sales. These positives were partially offset by a continued decline in sale prices of gas and electricity, driven by weak demand and continuing competitive pressure, exacerbated by oversupply and market liquidity, as well as a different tariff regime for supplying gas to the residential regulated market.

Adjusted net profit of 2014 amounted to €190 million, up by €443 million reported in 2013. This reflected better operating performance, partially offset by lower results from equity-accounted entities.

Refining & Marketing

The Refining & Marketing segment reported half-sized operating losses at €208 million compared to 2013, in spite of continuing industry headwinds on the back of weak demand and overcapacity. The improvement was driven by improved refining margins compared with the particularly depressed scenario of 2013 following a fall in oil prices, and restructuring initiatives, including the start of the green refinery project in Venice, and cost efficiencies, particularly with respect to energy and overhead costs. Marketing results were sustained by a decline of oil prices despite weak demand and rising competitive pressure. The adjusted net loss for the full year was €147 million, down by €85 million from the previous reporting period.


Versalis reported an adjusted operating loss of €346 million, a decrease of €40 million or 10.4% from 2013. The loss matured against the backdrop of an unfavourable trading environment which reflected continued weakness in commodity demand and increasing competition from non-EU producers. These trends were partly offset by efficiency initiatives and restructuring programs, mainly relating to the start-up of the Porto Torres green chemical project and the shut-down of certain unprofitable production units as well as lower oil-based feedstock prices in the last part of 2014. Adjusted net loss of €277 million decreased by €61 million from 2013.

Engineering & Construction

The Engineering & Construction segment reported an adjusted operating profit of €479 million, up by €578 million from 2013 reflecting extraordinary losses incurred in 2013 driven by changed estimates at long-term contracts. Adjusted net profit increased by €562 million to €309 million.

Adjusted operating profit by segment





(€ million)




Exploration & Production




Gas & Power




Refining & Marketing








Engineering & Construction




Other activities




Corporate and financial companies




Impact of unrealized intragroup profit elimination








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